Recently, Texas legislators came to an agreement on a two-year, $80.6 billion budget for the state.
While no further details regarding the deal were relayed, many expect the new budget to include a "massive amount of state layoffs," the Associated Press stated.
The state had been attempting to resolve its multi-billion dollar gap in revenue, however, Republican leaders were against raising taxes and were vehemently opposed to dipping into the state's $10 billion Rainy Day fund.
"For the life of me I don't understand why we won't use that," said Senator Bob Deuell, an East Texas Republican, referring to the fund.
The major cuts as a result of the new budget will be to the state's government, including public schools and healthcare for the disabled, poor and elderly. According to one of the plan's negotiators, Lieutenant Governor David Dewhurst, the new budget will protect taxpayers while cutting $15 billion in government spending.
The layoffs could affect the state's real estate market in its major metropolitan areas. The inventory of available Houston properties jumped during April, increasing by 6.78 percent, with 35,715 properties unoccupied, Altos Research reports. With potential cuts looming, this stock could jump even higher.
Courtesy of 2M Realty News